What's the accumulated value of an investment of 5000 compounded monthly at 5% for 8 years
+23254 Compound interest formula: A = P(1 + r/n)^(n·t)
A = final amount P = amount invested = $5000.00 t = number of years = 8
r = rate (as a decimal) = 0.05 n = number of times compounded per year = 12
A = 5000(1 + 0.05/12)^(12·8)
If you enter this into a calculator, you will get the answer.
(Hint: your answer will be between $7000 and $7500.)
+23254 Compound interest formula: A = P(1 + r/n)^(n·t)
A = final amount P = amount invested = $5000.00 t = number of years = 8
r = rate (as a decimal) = 0.05 n = number of times compounded per year = 12
A = 5000(1 + 0.05/12)^(12·8)
If you enter this into a calculator, you will get the answer.
(Hint: your answer will be between $7000 and $7500.)
